AHL Research has published a report on KSE – the Banking sector’s profitability as of October 31, 2025. It states that banks recorded their highest-ever nine-month profit. Marking a milestone, the KSE all-share banking sector recorded its highest-ever nine-month profit after tax (PAT) at PKR 510bn, a 12.4% YoY increase. In 3QCY25, PAT hit PKR 169bn, a sharp 6% YoY climb, powered by balance sheet growth and diversified income streams. At its core, NII drove earnings, while non-markup income strengthened through higher fee income, foreign exchange gains, provisioning reversals, and capital gains.
Key highlights from 9MCY25
Performance turnaround (BML). BML turned profitable in 9MCY25, posting a profit of PKR 890 million compared to a loss of PKR 3.2 billion last year. This turnaround was driven by improved NIMs and a PKR 1.9bn gain on securities.
Earnings revival reinforces turnaround narrative (NBP). NBP’s profitability surged nearly 18x YoY in 9MCY25, driven by the absence of last year’s pension provisioning and strong growth in NII and non-funded income. NIMs rose to 4.04% in 3QCY25, the highest since 3QCY15.
UBL/BOK posts robust earnings growth. UBL/BOK delivered a strong earnings performance in 9MCY25, with PAT rising 104% and 89% YoY, respectively. UBL’s profit growth was fueled by a 154% surge in NII and a PKR 4.7bn provisioning reversal. In comparison, BOK benefited from an 18% increase in NII alongside a notable rise in gains on securities.
BOP and AKBL also delivered stellar performances. For BOP and AKBL, core operations remained strong, with NII reaching PKR 58.5/65.5bn, respectively, during 9MCY25, reflecting robust YoY growth of 90% and 47%.
§ The banking sector delivered an exceptional performance in 2025, posting returns of 86% CY25TD versus the KSE-100’s 36% and KSE-all 33%, outperforming the benchmark by 50% and the all-share index by 53%. Within the sector, BOP led with an impressive 279% gain, followed by NBP (252%), AKBL (170%), BOK (167%), and BML (137%), all of which were supported by robust earnings growth and strong capital distributions.
Courtesy- AHL Research
